Another meatpacker selling Fulton Market property

Another meatpacker is ready to sell its property and move out of Fulton Market, where the estate of Flying Food Group founder Sue Gin also is weighing a potential sale of extensive real estate holdings.

The owners of El Cubano Wholesale Meats hired CBRE to seek a buyer for a two-story, 30,000-square-foot building at 914-26 W. Fulton Market, which could sell for more than $20 million, said CBRE Senior Vice President Keely Polczynski, who has the assignment.

A buyer would likely seek to capitalize on fast-rising retail rents in the area, likely topped by a floor of office space, she said.

Meanwhile, the estate of Gin—who started the airline catering company Flying Food Group in 1983—is evaluating the future of its portfolio of about 15 commercial buildings in the area along the northwest edge of the West Loop. Gin died in September 2014 at age 73.

CBRE is advising Gin's estate as it considers a potential sale or refinancing of those buildings in the city's longtime meatpacking and food distribution district, said Marty Stern, a senior managing director at Los Angeles-based CBRE.

In putting its building up for sale, El Cubano is following peers such as Economy Packing, Quality Food Products, Aspen Foods and John R. Morreale Meat that have sold their buildings to developers as the area changes to new uses such as restaurants, retail, offices and hotels. Ventures of New York-based Madison Capital, Highland Park-based Tucker Development, Chicago-based McCaffery Interests and New York-based Thor Equities are planning large redevelopments of those former meatpacking properties.

Anaheim, Calif.-based Bridgford Foods is seeking a zoning change to build two residential buildings where its factory now stands at 170 N. Green St.

“This is probably the hottest real estate market in the city right now,” said Rolando Casimiro, whose family is one of the owners El Cubano and its building. “Everybody is trying to take advantage of this opportunity and move somewhere else.”

El Cubano makes corned beef and sausage in one portion of the building and uses another part of the property to distribute meats such as beef, pork, chicken and lamb to restaurants and grocery stores, Casimiro said. The company, which has been in the neighborhood since 1985, plans to double or triple the size of its space in a facility near Midway International Airport, allowing the company to expand its business, he said.

“We outgrew this space a few years ago, and the demographics in the area are changing,” Casimiro said. “It's getting more difficult to operate because there's more foot traffic and car traffic. Half of the market has left.”

A venture of El Cubano's owners bought the building for $1.55 million in 2000, according to Cook County property records.

The building could now sell for well in excess of $20 million, based on asking rents of $90 or more per square foot in neighboring buildings, Polczynski said.

“Two years ago, we were seeing rents in the $30 range,” she said. “(Pricing) will depend on how much investors believe momentum will continue in the retail market.”

The brick structure is a contributing building in a landmarked portion of the neighborhood, meaning it is protected from being torn down and replaced with a larger building. But a buyer could add about 5,000 square feet on top for extra office space, a rooftop bar or other uses under the zoning, Polczynski said.

As the El Cubano building heads to market, Gin's estate is considering whether to sell a portfolio of buildings on and around Randolph Street.

CBRE has talked with owners of other real estate in the area, which Stern describes as “gathering information.” No buildings are formally on the market, he said.

The estate could sell the buildings, refinance them or keep them and continue to collect rent, Stern said. He declined to estimate the value of the portfolio.

“We're trying to figure out what's in the best interests of the estate,” Stern said.